What is an Estidama Lease Contract - Dubai

What is an Estidama Lease Contract - Dubai?

What is an Estidama Lease Contract - Dubai?

Until recently the Dubai Department of Economic Development (DDED) required all companies in Dubai mainland to rent a physical office space, with a minimum size of 200 sqft in order to issue the DED Trade Licence. The DDED would inspect the office space and approve as part of the licence set up.

However now DDED has permitted companies to use a Estidama or ‘Sustainability’ virtual lease option and allowed smaller companies with fewer staff to set up the licence without a physical space.

This is in line with Dubai’s overall drive to attract more companies and investors and to drive down the set up costs for companies looking to establish in the UAE. Abu Dhabi has also done the same with the expanded Tajer Licence activities and the new Abu Dhabi Freelancer Licence

The Estidama or Sustainability contract is essentially a virtual office. You get a fully lease agreement for the company and this enables you to obtain your Trade Licence. This agreement also enables you to get up to 4 employment visa/labour quota against this space.

A summary of the Estidama Licence

  1. This in Dubai only – Abu Dhabi is using the Tajer Licencing model
  2. There is no requirement to rent a physical office space
  3. The Estidama is issued by Dubai Land Department, and takes the form of a Estidama Ejari
  4. This provides you with a virtual address only
  5. Most providers allow you to rent a dedicated desk, for an extra fee
  6. Business centres can either provide virtual office or an actual office for Estidama but not both
  7. You can renew the licence indefinitely using the Estidama but you cannot switch from a physical space in year 1 to Estidama year 1 for example
  8. Limited number of visas – normally up to 4. Unlike a full Ejari where quota is unlimited based on size
  9. TRN number accessible
  10. Bank account possible
  11. DU/Etisalat possible
  12. This option is not possible for companies that need special approvals

How do I get a Dubai DED Licence with and Estidama?

PRO Partner Group can assist you fully to set up the licence and to obtain the Estidama licence. At PRO Partner Group, our team of expert advisors can help you set up the correct licence, activity, and approvals, register the Estidama licence. For more information, please get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120, for Abu Dhabi, email us at info@ppg.ae or complete the contact form below and we will be delighted to assist you.

Get in touch with PRO Partner Group

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